Netsol ( (NTWK) ) has released its Q1 earnings. Here is a breakdown of the information Netsol presented to its investors.
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NETSOL Technologies, Inc. is a provider of AI-powered solutions and services that enable OEMs, dealerships, and financial institutions to sell, finance, and lease assets, primarily serving the asset finance and leasing industry across over 30 countries.
In its first quarter fiscal 2026 earnings report, NETSOL Technologies announced a 2.8% year-over-year increase in total net revenues, reaching $15 million. The company highlighted a significant 9.4% growth in its cloud and SaaS revenue, indicating a strategic shift towards recurring, platform-based offerings.
Key financial metrics revealed that while subscription and support revenues rose to $9 million, services revenues saw a decline to $6 million compared to the previous year. Despite the increase in total net revenues, the company reported a gross profit of $5.9 million, down from $6.6 million the previous year, and a net loss of $2.4 million, contrasting with a net income of $0.071 million in the prior year period.
The company faced a higher operating expense ratio and a temporary compression in gross margins, resulting in a loss from operations of $1.8 million. However, NETSOL’s cash position improved to $22.7 million, providing liquidity to support growth initiatives and investments in recurring revenue streams.
Looking ahead, NETSOL’s management remains optimistic about the company’s long-term stability and profitability, emphasizing the resilience of its business model and commitment to enhancing operational efficiency amidst short-term challenges.